European stocks to open lower: UK inflation and elevated bond yields in focus

LONDON — European stocks are expected to open in negative territory on Wednesday as global markets keep a close eye on elevated bond yields and await U.K. inflation data due later this morning.

The U.K.'s FTSE index is seen opening 0.6% lower, Germany's DAX down 0.7%, France's CAC 40 down 0.5% and Italy's FTSE MIB 0.4% lower, accoridng to data from IG.

European bourses look set to follow Asia-Pacific markets lower as investors assess elevated bond yields and inflationary pressures. Yields on U.S. Treasurys rose Tuesday with the 30-year Treasury yield above 5.19%, its highest level since 2007. Meanwhile, the benchmark 10-year yield climbed toward 4.69%.

Geopolitical tensions are also in focus after U.S. President Donald Trump said in a statement Tuesday that he was "an hour away" from deciding to attack Iran, before he was persuaded to postpone the strike for a few days.

Data releases in Europe on Wednesday include U.K. consumer price inflation, which is expected to have cooled to 3% in April, from 3.3% the previous month, reflecting new support measures for household energy bills. Earnings come from Experian.